Europe’s heatwaves threaten insurers’ earnings, rating agency S&P says
Summary
Europe’s heatwaves are causing more insurance claims, especially for life and health insurance, due to heat-related deaths and worsening health issues. This may lead to higher insurance costs for customers as companies try to cover these growing expenses.Key Facts
- Europe is experiencing intense heatwaves that increase drought and wildfire claims for insurers.
- Life and health insurers, along with reinsurers (companies that insure insurers), face rising costs from heat-related deaths and health problems.
- The ageing population in Europe is more vulnerable to heat, increasing life insurance claims.
- Between 2004 and 2024, the percentage of Europeans aged 65 and older rose from 16.4% to 21.6%.
- Most excess deaths during recent heatwaves (about 9,000 out of 10,650) occurred in people aged 65 and above.
- Older adults are more affected by heat because their bodies cool down less effectively.
- Recent heatwaves in Europe have caused thousands of excess deaths and broken temperature records.
- S&P has not yet downgraded insurers but warns risks may rise as heatwaves become more frequent and the population ages.
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